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US Dollar Dips as GDP Misses the Mark

Pound News: GBP Weakened by Political Uncertainty

Sterling (GBP) tumbled against the majority of its peers on Thursday as the sacking of Damian Green as first sectary of state prompted some concern over the stability of the UK government as Theresa May lost one of her closest allies.

The Pound found some respite with the release of the UK’s latest public borrowing figures as the public deficit narrowed in November.

However, it was not enough to prevent the rout and Sterling still ended the session lower.

Looking ahead to today, the final release of the UK’s third quarter GDP figures may breathe some life into the Pound later this morning, although an expected slowdown in business investment could clip these gains.

Euro News: EUR Bolstered as Consumer Confidence Rises

The Pound to Euro (GBP/EUR) exchange rate was pressured lower yesterday as Eurozone consumer confidence beat expectations.

The bloc’s latest sentiment index climbed into positive territory for the first time in over a decade in December as households reflected on the significant economic recovery seen in the Eurozone over the last year.

However, an expected dip in Italian business confidence could weaken the Euro later this morning as economists forecast that the country’s sentiment index will have slipped from 110.8 to 110 in December.

US Dollar News: USD Weakened as GDP Revised Down

The Pound to US Dollar (GBP/USD) exchange rate initially slipped yesterday as investors shied away from Sterling over concerns for the stability of the UK government.

But the ‘Greenback’ stumbled in the afternoon as the latest US GDP figures reported that domestic growth struck 3.2% in the third quarter, down from previous estimates that it would reach a three-year high of 3.3%.

The US Dollar may push higher again later today however as economists forecast that US durable goods orders will have rebounded from -1.2% to 2% in November.

Canadian Dollar News: CAD Surges as Inflation Rockets

The Pound plummeted by over a cent against the Canadian Dollar (CAD) on Thursday as Canada released some impressive CPI figures.

Data showed that inflation rocketed from 1.4% to 2.1% in November, beating expectations it would reach 2% and matching the two-year high struck in January.

Further bolstering the ‘Loonie’ was the accompanying retail sales figures as sale growth jumped from 0.2% to 1.5% in October, easily outpacing predictions of a much more modest rise to 0.3%.

The Canadian Dollar may build on these gains again later today, with a robust GDP reading from Canada in October likely to strengthen the ‘Loonie’.

Australian Dollar News: AUD Lifted by USD Weakness

The Pound to Australian Dollar (GBP/AUD) exchange rate slumped yesterday as the concerns over the UK government weighed on the pairing.

Further extending the ‘Aussie’s gains was the downturn in USD, which prompted investors to flock to the high-yield currency.

Meanwhile, the Australian Dollar may find itself trending lower over the new few days as a lull in domestic data and thinned trading volumes over the Christmas period leave the currency with little to drive momentum.

Upcoming Data

Friday, 22 December, 2017

 

09:30              UK GDP

09:30              UK Business Investment

13:30              CA GDP

13:30              US Durable Goods Orders

15:00              US New Home Sales

 

Jack Wiles 

Currency Dealer

01442 892 073

 

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